| Author | Cao Thi Huong Giang |
| Call Number | AIT RSPR no. SM-99-106 |
| Subject(s) | Capital budget--Vietnam
|
| Note | A research study submitted in partial fulfillment of the requirement for the degree of Master of Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | The capital budgeting is considered the most challenging issue because its outcome will define
whether the investment is profitable in the future or not. Unfortunately, there is a very narrow
understanding about capital budgeting in Vietnam. Therefore, this research was carried out in
respect to have an clearer understanding about capital budgeting process in Vietnam hotel
sector through a case study of Majestic hotel in Ho Chi Minh city, Vietnam.
The framework for this study was developed from the contemporary finance literature. By
interviews with hotel investors, planning and investment managers, government officials, it is
found out in Majestic hotel that the "top-down" planning is applied; the strategic fitness,
urgency, and investment timing are the most important criteria in capital investment decisionmaking; financial assessment is done mainly for checking the investment's profitability and its
capability of debt coverage; capital budgeting techniques commonly used are NPV, IRR and
risk-unadjusted payback period; the cut-off rate is determined by the approach of opportunity
cost of capital.
In this research, it is suggested that profitability be recognized as important as the current
criteria used for capital investment decisions and the current methods used on financial
assessment need to be adjusted for more reliable results, such as cash flow estimation. |
| Year | 1999 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Gupta, Jyoti P.; |
| Examination Committee(s) | Truong Quang; Ramachandran, N.; |
| Scholarship Donor(s) | Government of Switzerland; |
| Degree | Research studies project report (M.B.A) - Asian Institute of Technology, 1999 |